A virtual dataroom, or VDR is a secure cloud-based storage system that allows companies to share sensitive information securely with third parties. They offer a number of benefits to different industries, for instance, the capability to work effectively, access documents at any time, and secure storage of multiple versions of the same document.
Virtual data rooms are beneficial in any industry that requires to share confidential information with third party. Due diligence in M&A fundraising, M&A, and an initial public offerings are among the most popular use cases. However, the legal industry and healthcare sector profit the most from a virtual data room, because they often deal with highly confidential information as well as sensitive business documents.
Due diligence in M&A requires potential buyers to look over extensive documentation. A VDR can streamline this process by offering features like automatic indexing, search-full-text search and control based on roles. The VDR can also help M&A professionals stay in compliance with regulations, due to protocols reporting tools as well as robust security measures, such as watermarking, data encryption and virus scanning.
Fundraising and IPOs require high levels of collaboration between shareholders, and VDRs VDR can help with this process by providing efficient communication tools such as comment sections and Q&A. Additionally the top-rated VDRs allow you to keep track of every user’s activity with extensive logging and reporting capabilities. In terms of pricing, the top online data room providers provide pricing structures similar to cell phone and internet plans, which include a base fee and optional add-ons that are based on features or duration.
